Financial development, manufacturing sector and sustainability: Evidence from Nigeria

ASALEYE, Abiola John and Lawal, A. I. and Asamu, Festus and Inegbedion, H.E and Arisukwu, Ogadimma C. and Popoola, Olabisi Financial development, manufacturing sector and sustainability: Evidence from Nigeria. ). Financial development, manufacturing sector and sustainability: Evidence from Nigeria, 4 (12). pp. 539-546.

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Abstract

Summary: The study investigates the impact of financial development indicators on the manufacturing sector in Nigeria using the Vector Error Correction Model. The findings from the study show no bi-directional causal effects between financial indicators and output in the manufacturing sector but there was presence of joint long-run and short-run causality when output in the manufacturing sector is used as a dependent variable. Likewise, the variance decomposition showed that the forecast error shocks of the financial development indicators affect output in the manufacturing sector at different horizons, thus implying that long-run policies can be considered to improve the manufacturing output in Nigeria via the financial sector to promote sustainable growth.

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